Facebook Quarter Was Remarkable, I'm Not Backing Away: More Squawk From Jim Cramer

TheStreet's Jim Cramer said Facebook's (FB) strong-third quarter results were 'overshadowed' by a few words on the conference call.

NEW YORK (TheStreet) -- Shares of Facebook (FB) were falling nearly 5% on Thursday morning after the company posted better-than-expected results for the 2016 third quarter, but gave a cautious outlook for 2017.

On the conference call, CFO David Wehner said the company expects ad revenue growth rates to "come down meaningfully." Wehner also said 2017 would be an "aggressive" investment year.

"Those three words 'meaningfully, aggressive and substantial' they overshadowed everything, which I think is ridiculous," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

"You saw the stock drop when they talked about a meaningful decline in the rate of the amount of money that's going to come in from advertising, ad load, and they said they have to spend money substantially and aggressively and that just freaked everybody out," Cramer explained.

But Cramer noted that this didn't amount to a guidance cut. "It amounted to them spending money to be able to make it so the user experience is great across a whole host of things," he said.

Cramer contended that the quarter was "remarkable" and the conference call was "unbelievable."

"I'm not backing away from it one bit and I'm not cutting numbers," he added.

"Those three words were fighting words meaning that you should take your 2018 (earnings estimates) down from $7 (per share) to maybe $6.50, maybe to $6.20. I do not think that was correct," Cramer said, noting that was the "knee-jerk reaction" to the conference call.